The Australian dollar rose today even though the minutes of the last central bank’s policy meeting reveled that policy makers do not rule out additional interest rate cuts.
Today, the Reserve Bank of Australia released the minutes of its October 1 meeting, which were rather dovish, saying:
Members were informed that recent indicators suggested that growth remained below trend into the September quarter. The transition from the investment phase to the production phase of the resources boom had become more evident over the course of the past year.
As a result, possibility of an interest rate cut remains:
Members agreed that the Bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them.
The Australian currency rose despite the central bank’s stance, perhaps with the help from positive China’s data. Annual inflation in the Asian country was at 3.1 percent in September, above expectations of 2.8 percent. Another economic report this week is expected to show that China’s growth has accelerated.
AUD/USD rose from 0.9484 to 0.9535 as of 3:40 GMT today. EUR/AUD fell from 1.4290 to 1.4223 and AUD/JPY went up from 93.48 to 93.92.
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